2010-10-22 Cost of Government Commission Minutes

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MS. NICHOLSON: So if you could all kind of squeeze into the table at once. So if you would that and then introduce yourselves. MS. CRAWFORD: First, good morning and thank you for having us here. I’m Nancy Crawford. I’m the Director of Finance. On my left is Gilbert Benevides. He is our Purchasing Agent, and Purchasing falls under the Finance Department. On my right is Jodie Yanagihara from Public Works, and she’s in their contract section, managing the construction type contracts. They have other contracts but what differentiates her from our other goods and services would be construction contracts. And Craig Masuda from Corporation Counsel, and he is Finance Department’s attorney and therefore specializes among other things, procurement. MS. NICHOLSON: Thank you for coming. MS. PROVALENKO: Thank you. MS. CRAWFORD: We are pleased to be here, and I just want to tell you I really appreciate the difficult job that you all have volunteered to do and take on and trying to help find some cost reductions. So we appreciate this opportunity to talk a little about procurement and sort of based on our understanding of what you we thought you wanted to hear. And I hope this will cover our intentions to do a brief like 15 minutes covering from legal to specific aspects of procurement and some of our processes, and then just be available for questions. So, to start that off, we start with what the legal basis is. Craig is going to do the first section. MR. MASUDA: Good morning. What I’ll be going through is this handout you have in front of you, but we’ll be doing that a little bit later on. Let’s start of with what procurement is and what procurement is not. This is the procurement code, the different sections of the procurement code. What procurement code is, is the purchase or obtaining of goods and services. What it does not include though is purchases of land, any kind of land acquisition, any kind of land code, be it lease of foul feed purchase or a license or any type of land acquisitions. That’s not covered by the procurement code. The procurement code is 103D of Hawai‘i Revised Statutes. It’s a state law. The primary chapters like I said is 103D, there’s also 103F which has to do with procurement of health services. That is usually only done by Office of Aging, so I’m not going to go into that. The main purchasing activity for the county is always under 103D. Under 103D, there’s also a provision where they have a state procurement policy board. That’s the creating, or the enabling statute for that organization. That organization is charged with getting statutory law of 103D and creating Hawai‘i Administrative Rules. So just like when we have county laws then we have departmental rules, you have the state law and then you have the Hawai‘i Administrative Rules. The Hawai‘i Administrative Rules gives detail of what the state law is. The state law will give you general policies and Hawai‘i Administrative Rules will tell you exactly how to accomplish those policies and what to do. That being said then, when you look at the progression, and I’m sure Kathy already went through it with you folks, supremacy of laws. The county has no authority to change the procurement code or the Hawai‘i Administrative Rules. We have to follow their rules. Also within that, Hawai‘i Administrative Rules is under Title 3. So if you folks want to look it up, look up Title 3, and there’s a whole bunch of different sections in there.The procurement code 4